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Self employed scheme: What support is available if you're not eligible for SEISS?
SELF-EMPLOYED support was recently extended by the Government, but what support is available for people who are not eligible for the Self-Employment Income Support Scheme?
The Self-Employment Income Support Scheme (SEISS) has now been extended until April 2021. But the scheme’s extension will be of little assistance to swathes of self-employed people who are not eligible to make a claim. The scheme has been criticised for excluding a number of the self-employed, but there is additional assistance available for people whose businesses have been impacted by COVID-19.
Who is not included in the Self-Employment Income Support Scheme?
Self-employed people with taxable profits more than £50,000 are not eligible for SEISS.
For people who also have PAYE work, those with less than 50 percent of their income stemming from self-employment may also not be eligible for SEISS.
The scheme is also unhelpful for the newly self-employed, as you must have been self-employed prior to April 6, 2019 to have filed a 2018/19 tax return.
You also cannot claim SEISS if you trade through a limited company or a trust.
What support is available for the self-employed?
The Self-Employment Income Support Scheme excludes a large number of self-employed people, however there are other types of support available.
The Bounce Back Loan scheme for example allows claimants to borrow up to £50,000, which now needs to be paid back within 10 years.
When the loans were launched earlier this year the initial time frame to repay the loans was six years, but this has changed under the Government’s new ‘pay as you grow’ initiative.
Self-employed people also now have until the end of November 2020 to apply for a Bounce Back Loan.
Announcing the changes, the Chancellor said: “Right now, businesses need every extra pound to protect jobs, rather than repaying loans and tax deferrals.”
Andrew Oury, Partner at Oury Clark, told Express.co.uk about some of the additional support available for the self-employed at this time.
He said: “For businesses there are various support schemes which include grants as well as loans.
“For example if you run a small business you could be eligible for the Coronavirus Business Interruption Loan Scheme, Coronavirus Future Fund, Coronavirus Bounce Back Loan or Coronavirus Small Business Grant Fund.
“Plus, there’s more localised support like the Coronavirus Local Authority Discretionary Grants Fund and sector specific funds such as Coronavirus Retail, Hospitality and Leisure Grant Fund.
“Support for larger businesses include Coronavirus Large Business Interruption Loan Scheme and COVID-19 Corporate Financing Facility.
“There is also business rates relief for retail, hospitality, leisure, nursery businesses.”
The Government is also allowing many self-employed people to defer their tax payments while the pandemic is ongoing.
Mr Oury added: “Support also extends to those who have tax bills to pay.
“Deferral of VAT payments or your Self-Assessment payment on account can be obtained and the Chancellor recently announced some relaxations as well as extensions to ‘time to pay’ plans which should be helpful.”
The Government has also increased its provisions for benefits such as Universal Credit, which may be able to help people whose businesses have been impacted by COVID-19.
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